Consumer and producer surplus

Question 1

What is consumer surplus?

Answer 1

The difference between the price consumers are willing and able to pay and the price they actually pay.

Question 2

What is producer surplus?

Answer 2

The difference between the price producers are willing and able to supply a good at and the price they actually receive.

Question 3

Is consumer or producer surplus found above the supply curve?

Answer 3

Producer surplus is found above the supply curve and below the price line, while consumer surplus is found below the demand curve and above the price line